| Property: | Spanish Mountain Gold Project | |
| Ownership: | 100% Ownership | |
| Symbol: | TSX.V: SPA | OTC: SPAZF | |
| Location: | British Columbia, Canada | |
| Share Structure: | Shares Issued & Outstanding: Fully Diluted: | 327 Million 407 Million |
| Market Capital: | ~ $90 Million | |
| Management: | Larry Yau, CEO |
|
| Board of Directors: | Morris Beattie Don Coxe Dale Corman | Christopher Lattanzi W. Terry MacLean Sara Heston |
Spanish Mountain is concurrently pursuing dual project objectives:
- Advance multi-million ounce reserve through critical project milestones towards production within a compressed timeline
- Rapid resource expansion—ongoing drilling programs to add to the multimillion ounce resource
Highlights of PFS results
Current strategy prioritizes the development of the near-surface/ higher-grade multi-million ounce reserve as a standalone operation. The PFS demonstrates a potential mining operation characterized by robust production profile, low operating cost and modest capital expenditures.
Project Economics
| Gold Price (USD) | |||||||||
| Units | $1,200 | $1,400 | $1,600* | $1,800 | $2,000 | $2,200 | $2,400 | ||
|---|---|---|---|---|---|---|---|---|---|
| Pre-Tax Economics | |||||||||
| NPV(5%) | $M | $125 | $486 | $848 | $1,209 | $1,570 | $1,931 | $2,293 | |
| IRR | % | 9% | 18% | 25% | 31% | 36% | 42% | 47% | |
| Payback | Yrs | 5.4 | 4.0 | 3.2 | 2.7 | 2.4 | 2.1 | 1.9 | |
| Cumulative Free Cashflow from Operations | $M | $1,040 | $1,583 | $2,127 | $2,670 | $3,214 | $3,758 | $4,301 | |
| Post-tax Economics | |||||||||
| NPV(5%) | $M | $129 | $415 | $655 | $888 | $1,119 | $1,350 | $1,580 | |
| IRR | % | 9% | 16% | 22% | 27% | 31% | 36% | 39% | |
| Payback | Yrs | 5.5 | 4.0 | 3.3 | 2.8 | 2.5 | 2.2 | 2.0 | |
| Cumulative Free Cashflow from Operations | $M | $1,041 | $1,454 | $1,797 | $2,140 | $2,484 | $2,828 | $3,173 | |
* PFS Base Case
Reserve
The Project’s Mineral Reserves, which are a subset of the M&I Mineral Resources, are based on the mine plan developed for the PFS. Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.
| Tonnage (Mt) | Au Grade (g/t) | Gold (Moz) | Ag Grade (g/t) | Silver (Moz) | |
|---|---|---|---|---|---|
| Proven | 40.8 | 0.79 | 1.03 | 0.67 | 0.88 |
| Probable | 55.1 | 0.74 | 1.31 | 0.74 | 1.30 |
| Total P&P Reserve | 95.9 | 0.76 | 2.34 | 0.71 | 2.18 |
Select Operational and Cost Metrics
| Unit | Yrs 1-6 Avg. | LOM Avg. | ||
|---|---|---|---|---|
| Gold Grade | g/t | 0.88 | 0.76 | |
| Annual Gold Production | Koz | 183 | 150 | (peak production 211Koz) |
| Annual Silver Production | Koz | 68 | 63 | |
| Cash Cost /oz | US$ | $602 | $696 | |
| All-in-sustainable Cost/oz | US$ | $707 | $801 | |
| Total Cost/ oz | US$ | $974 | $1,068 |
Unit Cost of Production
Unit | CAD | USD | |
|---|---|---|---|
| Mining | $/t mined | $2.22 | $1.69 |
| Mining | $/t milled | $10.80 | $8.21 |
| Processing | $/t milled | $6.58 | $5.00 |
| G&A | $/t milled | $1.36 | $1.04 |
| TSF | $/t milled | $0.17 | $0.13 |
| Water treatment | $/t milled | $0.47 | $0.36 |
| Total | $/t milled | $19.38 | $14.73 |
Initial Capital Expenditures
| Direct Costs | C$M | US$M |
|---|---|---|
| Overall Site | $26 | $19 |
| Open Pit Mining | $73 | $56 |
| Ore Handling | $34 | $26 |
| Process | $125 | $95 |
| Tailings and Water Management | $40 | $30 |
| Environmental Monitoring | $2 | $2 |
| On-site Infrastructures | $42 | $32 |
| Off-site Infrastructures | $64 | $49 |
| Water treatment Plant | $10 | $7 |
| Total Direct Costs | $416 | $316 |
| Project Indirects | $102 | $78 |
| Owner's Costs | $14 | $10 |
| Contingencies | $75 | $57 |
| Total | $607 | $461 |
Resource Expansion
The Company has an ongoing campaign to continue its track record of resource expansion.
As part of the PFS, an update of the Mineral Resources has been prepared based on the pit shell developed using assumed cost parameters and assumptions. The Project’s Mineral Resources, inclusive of the Mineral Reserves reported above, are as follows:
| Classification | Run of Mine (Mt) | Gold Grade (g/t) | Silver Grade (g/t) | Contained Gold (Moz) | Contained Silver (Moz) |
|---|---|---|---|---|---|
| Measured | 68.4 | 0.59 | 0.67 | 1.3 | 1.5 |
| Indicated | 225.7 | 0.47 | 0.73 | 3.4 | 5.3 |
| M&I Resources | 294.2 | 0.50 | 0.72 | 4.7 | 6.8 |
| Inferred Resource | 18.3 | 0.63 | 0.76 | 0.4 | 0.4 |
